Bring Order Into Market Chaos
Free Education | Pattern Recognition Software | Trading Ideas
Fibonacci ratios are found everywhere in nature starting from shell spirals and to planetary orbits. It is quite natural that people started to apply it to markets. Together with the natural human inclination to symmetry this gave birth to harmonic approach. MPS identifies harmonic patterns exactly to the rules that are recognized as standard worldwide.
Advanced formations are known as variations of harmonic patterns but there is one pattern, cypher, that was never derived from harmonic patterns. Cypher was created by Darren Oglsbee from scratch. Now advanced formations evolved into an independent pattern category. In many cases they even break classic harmonic rules. MPS identifies advanced formations exactly the way their creators teach in their videos, webinars and trading courses.
MPS was created by traders for traders. Every serious trader knows that a strategy should be backtested before it can be implemented live. If you find in your market research traditional patterns unsatisfactory you can always create your own pattern from scratch. By default, the custom pattern section contains the ratios of a unified gartley pattern – a very specific pattern created by Alexander Nikitin. By the way, MPS identifies Pesavento patterns as well.
Analyze markets from different perspectives.
MPS has multiple fully customizable algorithms to identify market swings. You can switch between them using a graphic user interface.
The total number of algorithms is 12.
There are four oscillator algorithms: wpr, cci, stochastic and rsi. These algorithms are very popular amoung Ellioticians.
Three price extremes algorithms: prex, close and fractals. These algorithms are very popular among channel traders.
Three price-only algorithms: pips, atr and percent. These algorithms are the oldest and are very popular among classic chart pattern traders.
And two manual algorithms: X-A-B-C-D and X-C. These algorithms are popular among traders who want to be discretionary in swing identification.
Same pair, same timeframe, same pattern… You would have missed these winners if you hadn’t analyzed the market from the second perspective as well.
Graphic User Interface (GUI). You do not need to go to the MPS settings every time you wish to switch an algorithm or disable a pattern. A compact panel in the left-top of your chart gives you instant access to main functions in a click of a button. The panel can be minimized and maximized.
One of the unique and most useful functions is the ability to pause the MPS calculations. By default it is toggled on and MPS automatically recalculates the chart when you switch the timeframe. But what if you want to inspect the higher timeframe pattern on lower timferames? How to make the pattern stay? Toggle the MPS off. You can also use this function to save your RAM.
MPS analyzes only the visible part of a chart. It doesn’t matter if this part covers a period which is 50 years back or nowdays. Unlike others, MPS is NOT trying to analyze all those hundreds of thousands of bars from your history. This gives you unlimited access to history, saves your RAM and simulates live trading – in live trading you also don’t see what’s beyond the right edge of the chart, aren’t you?
Some MPS functions are called when a special keybord button is pressed. “Q” toggles the indicator on/off. “W” minimizes/maximazes GUI panel. “E” switches between algorithm group1/group2. “T” switches between algorithms. “A” activates X-A-B-C-D manual swing identification mode. “V” to activate X-C manual swing identification mode. “S” to delete all drawings from the chart. “Z” to draw an ATR-net.
After you have done a backtest and found the best ratios, entries, stops and targets for your pattern just save your results into a file. MPS is able to read your file to draw the pattern exactly the same way you found perfect. As you progress in backtest you learn. So does MPS when it reads the results of your backtest.
Pattern Trade Assistant (PTA) is a bonus expert advisor. It places trades according to the money management rules that you specify in settings. It also manages your position adjusting the targets if needed and moving the stop to breakeven. You don’t need to sit in front of your screens all day anymore. Pattern Trade Assistant will take care of your trades.
The purpose of a pattern is to indicate to a potential reversal point. This reversal point is a prediction that is made based on prior swings relations analysis. Although, the predicted point rarely coinsides with real price pivot, only this approach is objective and only this approach allows drawing potential patterns long before they complete. With MPS you have the time needed to properly prepare for the trade because it draws potential patterns.
Stoploss level helps you limit your losses when price doesn’t obey the pattern. MPS gives you an opportunity to choose the type and the value of your level calculations. It can be based on fibonacci, atr or absolute pips distance. Once the stop is set MPS also suggests you target levels based on total risk distance. You can also disable all these levels simply setting “-2” as a value. If you want to have my own ideas about stops then set the value to “-1”.
You can set your own color to every pattern. Distinguish the patterns by colors. I like to have red for gartleys and yellow for bats. This is much better than typing the name of the pattern on the chart. Set the transparency of the background. Make your patterns look beautiful.